Minister for Petroleum and Natural Resources Khaqan Ababsi on Monday said that in order to meet energy crisis his ministry has identified 46 oilfields with a capacity of 280 mmcfd dormant natural gas, which could generate up to 1000 MW electricity.

Abbasi while talking to journalist in parliament house said that his department has moved a summary regarding regularistaion of Liquid Petroleum Gas (LPG) prices which will be tabled in next CCI meeting, when approved the LPG prices would come down substantially.

Dormant gas or sometimes referred as underground is natural gas which still in testing phases and is not included in the system due to various technical reasons.

It is up to CCI now, we have given our recommendations and proposals to bring down the LPG prices, if all provinces agree and approve it, prices would come down immediately, said Abbasi.

Earlier, while briefing National Assembly Standing Committee on Petroleum and Natural Resources, minister said that due to severe shortage of gas, CNG stations would be closed for four months (starting from November 15), and after winter is over, the old schedule of two days in a week operation would again be implemented.  Abbasi however, said that his ministry has told CNG Association that if they wanted to run their stations on permanent basis they would have to switch to LNG.

He said there was no change in the plan for the natural gas supply to industry and due to severe shortage his ministry could not provide gas to industry in winter.

When media pointed out government announcement of gas supply to industry, he simply said “we have very little gas and domestic consumers are our priority, the day winter starts, gas supply to industry would be stopped, government has given them electricity, why don’t they use it, Ababsi said.

We have told them to get your own LNG, we would convert it into natural gas and would supply them through the same lines they are getting natural gas, Minister explained.

Minister said that LNG terminal construction was going on in fast pace and first LNG Terminal would be operational in the first quarter of 2015.  Under the chair of Chaudhry Bilal Ahmad Virk, the committee reviewed the implementation status of Recommendations, made by the Standing Committee during November, 2013 to May, 2014.  

SSGCL officials revealed that the Supreme Court had declared the Implementation Agreement issued on August 2003 between Sui Southern Gas Company Limited and M/s JJVL, as null and void.

The company legal advisors have suggested that, till a permanent mechanism for the operation of the plant (to ensure continuous supply of LPG to end consumers) is put in place; the parties may enter into an arrangement of their own, based on commercial consideration, subject to the approval of respective boards.

If no such mechanism is reached, SSGC would approach the Committee, formed by the Court for the resolution; and if the mechanism is agreed upon between the parties it should be brought to the notice of the Committee, for information and compliance of the Judgment.

Answering a question Ministry of Petroleum officials said that the Prime Minister’s Office has given go ahead for the completion of projects of gas, which are pending in the constituencies of Parliamentarians, while Ogra has already given its approval in this respect.

SSGC officials apprised the committee that they have detected 893 locations for 6 billion cubic feet per day gas theft, worth Rs3 billion. They said that out of Rs3 billion, Rs1 million has been recovered. Official explained that it was easy to recover from domestic or industrial or commercial consumers but consumers who were stealing gas through plastic pipe, recovery was very difficult.

We have identified 893 locations of gas theft where colonies are stealing gas through illegal connections, and up to 1000 houses are connected, we are taking care of situation systematically, in first phase we install bulk meters, and then gradually install individual meters to stop gas theft, SSGC general manager explained the committee.